Owning a Minimart/Supermarket

[sd_cruze]

Dear members,

Could anyone give me any advice on owing/operating a Minimart/Supermarket.

My Thai family lives in Kalasin (Issan), we own a 15Rai land which is located in front of the highway (the only highway that connects from Kalasin all the way to Mukdahan)

Currently from what I have understood that there are only two major Supermarkets in the area, which is Big C & Tesco Lotus and nothing in between until you reach Roi-Et. However you do come across 7Elevens at almost every gas stations but that’s it!!

Although I do not intend to start-off right away building something as big as Big C or Tesco, but at least somewhere down the middle. I need to start a decent family business since I plan to retire from my work in the Middle East in another 3yrs time and join my family in Thailand and this is the only thing that in the long run can grant me a permanent residency in the country.

So if anyone can shed some light about your experiences, pros and cons on running a Supermarket business that might help me would be really appreciated.

Thanks

Stephen

[bocceball1]

How about a coffee shop....Coffee Today etc.? kinda like a rest stop thing! Won't have to worry about the high inventory costs or the low margins (which is one of the problems with a market). The big stores (Tesco and Big C) make up for it in volume.

Good luck though

[rgs2001uk]

this is the only thing that in the long run can grant me a permanent residency in the country.

Other options available.

Why would you even want PR?

[brit1984]

There are good reasons (economies of scale) why the grocery industry is dominated by big companies, and if you have found a perfect spot without competition, they WILL open next to (or opposite) you.

Anyway operating a retail store is no easy retirement hobby - without the IT systems / know-how of the big players, it will be hard work to control cash/stock/payables (a small leakage/error is a big problem due to the low margins and the fact that Thai banks are hesitant to provide significant overdraft facilities to independent retailers).

An easier (and lower risk) idea for a retirement business would be to build a few shop-houses and/or apartments and rent them out (when Big C eventually discovers this perfect spot, you can sell the land to them, or let them build next door and sell your land for 5x more after they open) or invest in property elsewhere (as suggested by mccw).

If you have the energy and know how to operate a real commercial venture, I would recommend to focus on a less capital / working capital intensive business. There are lots of good opportunities in Thailand that require much less investment than building and operating your own supermarket.

[LuckyLew]

Retirement visa would do you

800 000 in the bank

Why risk such a large amount in a such a tough market

[davejones]

Retirement visa would do you

800 000 in the bank

Why risk such a large amount in a such a tough market

Maybe he's too young for a retirement visa.

[davejones]

this is the only thing that in the long run can grant me a permanent residency in the country.

Other options available.

Why would you even want PR?

It makes sense if Thailand is your home and you plan to stay forever, especially if you're relatively young. I'd be happy to have it.

[rgs2001uk]

Retirement visa would do you

800 000 in the bank

Why risk such a large amount in a such a tough market

Maybe he's too young for a retirement visa.

He is married to a Thai, he doesnt need a retirement visa.

[rgs2001uk]

this is the only thing that in the long run can grant me a permanent residency in the country.

Other options available.

Why would you even want PR?

It makes sense if Thailand is your home and you plan to stay forever, especially if you're relatively young. I'd be happy to have it.

So why not miss out the middle man and go straight for citienzship.

Suggest the OP heads over to the visa section and checks out the threads on PR/Citienzship.

The problem is Thailand aint his home, and I dont know what his plans are, I would like to think the OP would be astute enough to have several options open to him, rather then put all his eggs in one basket.

[davejones]

Retirement visa would do you

800 000 in the bank

Why risk such a large amount in a such a tough market

Maybe he's too young for a retirement visa.

He is married to a Thai, he doesnt need a retirement visa.

he could get a marriage visa in that case. But he seems to want PR, so maybe that's the whole reason for the business,

[davejones]

this is the only thing that in the long run can grant me a permanent residency in the country.

Other options available.

Why would you even want PR?

It makes sense if Thailand is your home and you plan to stay forever, especially if you're relatively young. I'd be happy to have it.

So why not miss out the middle man and go straight for citienzship.

Suggest the OP heads over to the visa section and checks out the threads on PR/Citienzship.

The problem is Thailand aint his home, and I dont know what his plans are, I would like to think the OP would be astute enough to have several options open to him, rather then put all his eggs in one basket.

I don't think having PR is having all your eggs in one basket. Thailand's not his home but it sounds like it will be in 3 years time. Maybe he doesn't want citizenship here. I wouldn't.

[GirlDrinkDrunk]

no gas for sale no reason to stop in my opinion.

[rgs2001uk]

this is the only thing that in the long run can grant me a permanent residency in the country.

Other options available.

Why would you even want PR?

It makes sense if Thailand is your home and you plan to stay forever, especially if you're relatively young. I'd be happy to have it.

So why not miss out the middle man and go straight for citienzship.

Suggest the OP heads over to the visa section and checks out the threads on PR/Citienzship.

The problem is Thailand aint his home, and I dont know what his plans are, I would like to think the OP would be astute enough to have several options open to him, rather then put all his eggs in one basket.

I don't think having PR is having all your eggs in one basket. Thailand's not his home but it sounds like it will be in 3 years time. Maybe he doesn't want citizenship here. I wouldn't.

So why is he talking about opening a supermarket, let the family do it.

Whats his plans, go to Makro/Big C/Tesco and buy this shit and then sell it at his place?

As for citizenship, it doesnt mean giving up your own.

The Op could get a job here then after 3 years apply for PR, no cost to himself, may well be the OP doesnt know the options available to him.

[davejones]

Maybe he wants to run a business himself. Don't understand why he should let his family do it. If I wanted to start a business I'd start one. Why would I try to get my family to start it instead.

I've n idea what his plans are. I doubt he's planning to buy from Big C. Probably buy from wholesalers are direct from the manufacturers. Wouldn't be my idea of a business to run, but supermarkets can be very successful if run properly. You have no idea what his experience is, but are already knocking him and making groundless assumptions.

We'll have to wait for his reply regarding exactly what his plans are. The OP is a little vague.

[davejones]

Depending what country he currently has citizenship with, he might have to give it up if he becomes a Thai citizen. Not all countries allow dual citizenship.

[brit1984]

Maybe he wants to run a business himself. Don't understand why he should let his family do it. If I wanted to start a business I'd start one. Why would I try to get my family to start it instead.

I've n idea what his plans are. I doubt he's planning to buy from Big C. Probably buy from wholesalers are direct from the manufacturers. Wouldn't be my idea of a business to run, but supermarkets can be very successful if run properly. You have no idea what his experience is, but are already knocking him and making groundless assumptions.

We'll have to wait for his reply regarding exactly what his plans are. The OP is a little vague.

yes, maybe the OP's vagueness is just his way of being modest about his experience / expertise in owning / operating supermarkets

if so, i think this venture will be a huge success and cp / tesco-lotus / big-c better watch out for this stealth fighter of the retail industry

[brit1984]

bocceball - good luck

[oogster8]

How about a coffee shop....Coffee Today etc.? kinda like a rest stop thing! Won't have to worry about the high inventory costs or the low margins (which is one of the problems with a market). The big stores (Tesco and Big C) make up for it in volume.

Good luck though

How about no profits! Opening a business for visa purposes is just downright silly!

Can anyone explain thta big coffee shop that just opened near Koreatown between asok and nana bts station. Such a big prime space and they sell coffee by the cup. How do they do it-make money that is?

[bocceball1]

How about a coffee shop....Coffee Today etc.? kinda like a rest stop thing! Won't have to worry about the high inventory costs or the low margins (which is one of the problems with a market). The big stores (Tesco and Big C) make up for it in volume.

Good luck though

How about no profits! Opening a business for visa purposes is just downright silly!

Can anyone explain thta big coffee shop that just opened near Koreatown between asok and nana bts station. Such a big prime space and they sell coffee by the cup. How do they do it-make money that is?

I Agree....it was said "tongue in cheek"...(ie jokingly)...as I have never seen SO MANY coffee places as here in Thailand...My wife and I were just recently commenting on with all the coffehouses how can any of them make money....I don't think they do and I don't think OP's idea of opening a market will either as I said.

[oogster8]

bball1- are you investing in reits or you actually own property that you rent to safeway. Not so ez to get renters like safeway or the us postal service as renters.

HAHAHA! such advice will make people so broke here. Real estate , esp commercial is very competitive!

[bocceball1]

I don't know any tenants that are stupid enough to pay rent, taxes and repair costs. Why would they when they can find plenty of places to rent where they all need to pay the rent. Another madcap scheme that is doomed to fail.

I'm not sure exactly of what this US thing is Bocca is talking about but I guess it could make sense if you as a tenant get a fixed rent for a long period like a lease hold in the UK.

My point Exactly!!!! YOU don"t know....that's why I pointed it out. If you're going to invest in Real Estate you may as well know what's out there and what your doing!

[brit1984]

bocceball - do you have any historical data for default rates on these assets?

(i.e. specifically "triple net lease" agreements in the US)

Edited October 13, 2013 by brit1984

[oogster8]

Anyway. Who in their right mind opens a business for the familee to run.

Isnt the idea when you marry a farang that the farang does all the work..................lol? And please ,dont doubt me on this, i sense family is counting on op to provide for them. Or else he would never have asked our advice.

[davejones]

Gone way off topic now.

By the way, some coffee shops make very good money indeed. Some smaller ones might not make what most Westerners consider much money, but i know some very happy Thai coffee shop owners that make more than most people here. A few are real goldmines. But some I do wonder how they make money. Just add up the customers per day and you can easily have an idea how much they make.

[davejones]

Anyway. Who in their right mind opens a business for the familee to run.

Isnt the idea when you marry a farang that the farang does all the work..................lol? And please ,dont doubt me on this, i sense family is counting on op to provide for them. Or else he would never have asked our advice.

Families all over the world are counting on the breadwinner to provide for them. Isn't that what people do for their families? I certainly want to provide for mine, as do most other people that I know. It's only a selfish person that wouldn't look out for his family. Unfortunately, most of these hang on on ThaiVisa.

oogster8 - This is probably only the case where farangs with some money marry uneducated Thai women. It's not he case in more equal marriages. I don't know too many farang-Thai married couples, but the ones I do know usually have the wife working and contributing.

Edited October 13, 2013 by davejones

[bocceball1]

Yes this did go off topic and getting back to it.....OP it may be that if they really want to build something there ....they've got to come up with some "gimmick" to get people to stop there.....for example ......Snake Museum, Build Giant Dinosaurs, dig a lake and make it look like an oasis so people want to stop,....I know these are dumb ideas....just saying have to think out of the box (something Thai's don't do well) to get people to stop.

[davejones]

Yes this did go off topic and getting back to it.....OP it may be that if they really want to build something there ....they've got to come up with some "gimmick" to get people to stop there.....for example ......Snake Museum, Build Giant Dinosaurs, dig a lake and make it look like an oasis so people want to stop,....I know these are dumb ideas....just saying have to think out of the box (something Thai's don't do well) to get people to stop.

If he opened a supermarket, then the reason to stop would be to shop. Isn't that why people go to supermarkets? People don't go shopping at Big C just because there's a snake museum nearby. They shop there because they need food. That's why they's stop at the OP's supermarket.

[bocceball1]

Yes this did go off topic and getting back to it.....OP it may be that if they really want to build something there ....they've got to come up with some "gimmick" to get people to stop there.....for example ......Snake Museum, Build Giant Dinosaurs, dig a lake and make it look like an oasis so people want to stop,....I know these are dumb ideas....just saying have to think out of the box (something Thai's don't do well) to get people to stop.

If he opened a supermarket, then the reason to stop would be to shop. Isn't that why people go to supermarkets? People don't go shopping at Big C just because there's a snake museum nearby. They shop there because they need food. That's why they's stop at the OP's supermarket.

You seem to write a lot (# of posts)...really wonder if you say much.

OP indicated, that yes he was thinking of opening a market ....BUT sounds like his property is in the boonies....Are you going to drive 50 kilometers to buy overpriced groceries at at small market ....probably not

MY POINT as said in previous posts was to forget about the market ....Come up with a "gimmick" ....something to make people WANT to stop (as I said earlier I wouldn't want to stop to buy groceries in the boonies and you probably wouldn't either)

“It is so pleasant to come across people more stupid than ourselves. We love them at once for being so.”

[oogster8]

Between las vegas and victorville, ca there is no small grocery store to shop at. Please there is great similarity here. Learn from it.................lol.

Anyway, what prevents the family from working?

If op were to give the family dynamics, kids how old, does he support mother ,father, uncles, aunties, step kids. We can give better options.

Sound as if he got a village to support if he need a market to support them.

[mccw]

Yes this did go off topic and getting back to it.....OP it may be that if they really want to build something there ....they've got to come up with some "gimmick" to get people to stop there.....for example ......Snake Museum, Build Giant Dinosaurs, dig a lake and make it look like an oasis so people want to stop,....I know these are dumb ideas....just saying have to think out of the box (something Thai's don't do well) to get people to stop.

If he opened a supermarket, then the reason to stop would be to shop. Isn't that why people go to supermarkets? People don't go shopping at Big C just because there's a snake museum nearby. They shop there because they need food. That's why they's stop at the OP's supermarket.

You seem to write a lot (# of posts)...really wonder if you say much.

OP indicated, that yes he was thinking of opening a market ....BUT sounds like his property is in the boonies....Are you going to drive 50 kilometers to buy overpriced groceries at at small market ....probably not

MY POINT as said in previous posts was to forget about the market ....Come up with a "gimmick" ....something to make people WANT to stop (as I said earlier I wouldn't want to stop to buy groceries in the boonies and you probably wouldn't either)

It is so pleasant to come across people more stupid than ourselves. We love them at once for being so.

Seriously if he is going to do it need to have a way to get people to stop.

I think- Thais love to take a photo. If his is the only market stop on main road between one place and the next then build a giant painted psychedelic elephant or something and people will stop for sure.